DELHI: Banks were suggested by RBI (Reserve Bank of India) to take more precautions before giving payments on the basis of claims of having funds lying idle in in some inoperative accounts.
RBI said to banks in a communique “Banks are advised to invariably verify the genuineness of the transactions and ensure that the amounts paid to the customers are properly audited by the internal auditors / statutory auditors.”
RBI also asked other banks to give due care to the risk associated before making any such payment.
RBI gave such statements as banks were facing a lot of problems with people not clearing their debts. Many such problems were reported to RBI when people take loans from banks and does not clear their debts and banks were not able to recover their money.
The RBI came to this point when it found that banks came up with rising cases of sustainable refunds of Depositer Education and Awareness fund, soon after banks transferred amount to account folders.
RBI said that it was not at all clear that how people immidietly approached the banks for repayments after balances in the accounts that were inoperative, were transferred to the fund. Even when these customers didn’t operate their account for ten years or more.
RBI said “Banks should, therefore, follow all instructions meticulously in respect of inoperative accounts.”
RBI wants banks to make special efforts to trace people to their banks in respect of their inoperative accounts.
Once such situation came to western countries in around 2008 when people started taking loans on each and every thing they wanted to buy even from the smallest of the television to the biggest of house loan. Those were the time of recessions in those countries. At that time western banks were also not able to recover even the principle amount. At that time banks became very strict in giving loan.